BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1150|
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                                 THIRD READING


          Bill No:  SB 1150
          Author:   Negrete McLeod (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE BUS., PROF. & ECON. DEV. COMMITTEE  :  6-1, 4/5/10
          AYES:  Negrete McLeod, Calderon, Correa, Oropeza, Walters,  
            Yee
          NOES:  Aanestad
          NO VOTE RECORDED:  Wyland, Florez

           SENATE APPROPRIATIONS COMMITTEE  :  10-0, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Denham, Leno, Price,  
            Walters, Wolk, Wyland, Yee
          NO VOTE RECORDED:  Cox


           SUBJECT  :    Healing arts

           SOURCE  :     Author


           DIGEST  :    This bill requires for purposes of advertising  
          that a health care practitioner, as specified, include  
          specific professional designation following the health care  
          practitioners name, requires the Medical Board of  
          California (MBC) to adopt regulations on or before January  
          1, 2012, on the appropriate level of physician availability  
          necessary within clinics using laser or intense pulse light  
          devices for elective cosmetic surgery, and requires the MBC  
          to post on its Internet Web site a fact sheet to educate  
          the public about cosmetic surgery and the risks involved  
                                                           CONTINUED





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          with such surgeries.  In addition, this bill revises the  
          existing definition of "outpatient settings" to include  
          fertility clinics that offer in vitro fertilization, and  
          states that it is the intent of the Legislature that the  
          Department of Public Health, pursuant to existing  
          regulations, inspect the peer review process utilized by  
          acute care hospitals.

           ANALYSIS  :    

           Existing law, the Business and Professions Code  

          1. Provides that it is unlawful for health care licensees  
             to disseminate or cause to be disseminated any form of  
             public communication, as defined, containing false,  
             fraudulent, misleading, deceptive statement, or image,  
             as specified, to induce the provision of services or the  
             rendering of a product relating to a professional  
             practice or business for which he or she is licensed,  
             and provides that any person so licensed who violates  
             this provision is guilty of a misdemeanor and that such  
             violation shall constitute good cause for revocation or  
             suspension of his or her license or other disciplinary  
             action including an administrative fine not to exceed  
             $10,000.

          2. Requires the MBC in conjunction with the Board of  
             Registered Nursing (BRN), and in consultation with the  
             Physician Assistant Committee (PAC) and professionals in  
             the field, to review issues and problems relating to the  
             use of laser or intense light pulse devices for elective  
             cosmetic procedures by physicians and surgeons, nurses,  
             and physician assistants.

          3. Specifies that the review conducted by the MBC, the BRN  
             and the PAC shall include the appropriate level of  
             physician supervision needed, the appropriate level of  
             training to ensure competency, guidelines for  
             standardized procedures and protocols that address  
             patient selection, education, instruction and informed  
             consent, use of topical agents, and procedures to be  
             followed in the event of complications or side effects  
             from treatment and procedures for governing emergency  
             and urgent care situations.







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          4. Requires the MBC and the BRN to promulgate regulations  
             to implement changes determined to be necessary with  
             regard to the use of laser or intense pulse light  
             devices for elective cosmetic procedures by physicians  
             and surgeons, nurses and physicians assistants.

          5. Requires the MBC to post on its Internet Web site  
             specified information in its possession, custody or  
             control regarding physicians and surgeons.

           Existing law, the Health and Safety Code, Section 1248 et  
             seq.
           
          1. Defines "outpatient setting" as any facility, clinic,  
             unlicensed clinic, center, office, or other setting that  
             is not part of a general acute care facility where  
             anesthesia is used.

          2. Defines "accrediting agency" as a public or private  
             organization that is approved to issue certificates of  
             accreditation to outpatient settings by the MBC pursuant  
             to specified requirements.

          3. Requires the MBC to obtain and maintain a list of all  
             accredited, certified, and licensed outpatient settings,  
             and to notify the public, upon inquiry, whether a  
             setting is accredited, certified, or licensed, or  
             whether the setting's accreditation, certification, or  
             license has been revoked.

          4. Authorizes the MBC or an accrediting agency to, upon  
             reasonable prior notice and presentation of proper  
             identification, enter and inspect any outpatient setting  
             that is accredited by an accreditation agency at any  
             reasonable time to ensure compliance with, or  
             investigate an alleged violation of any standard of  
             accrediting agency or any provision of the specified  
             law. 

          5. Provides that before suspending or revoking a  
             certificate of accreditation, the accrediting agency  
             shall provide the outpatient setting with notice of  
             deficiencies and reasonable time to supply information  







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             demonstrating compliance with the standards of the  
             accrediting agency as well as the opportunity for a  
             hearing on the matter upon request of the outpatient  
             setting.

          6. Defines treatment for infertility as procedures  
             consistent with established medical practices in the  
             treatment of infertility by licensed physicians and  
             surgeons including, but not limited to, diagnosis,  
             diagnostic tests, medication, surgery, and gamete  
             intrafallopian transfer.  Defines in vitro fertilization  
             as the laboratory medical procedures involving the  
             actual in vitro fertilization process.

          7. Defines acute care hospital as a health facility having  
             a duly constituted governing body with overall  
             administrative and professional responsibility and an  
             organized medical staff that provides 24-hour inpatient  
             care, including the following basic services: medical,  
             nursing, surgical, anesthesia, laboratory, radiology,  
             pharmacy, and dietary services.

          8. Requires DPH to license and inspect health facilities,  
             including acute care hospitals.  Requires DPH to conduct  
             periodic inspections of acute care hospitals no less  
             than once every three years.

          This bill, within the Business and Professions Code:

          1. Requires that any advertising by a chiropractor,  
             dentist, physician and surgeon, osteopathic physician  
             and surgeon, podiatrist, registered nurse, licensed  
             vocational nurse, psychologist, optometrist, physician  
             assistant and naturopathic doctor include specific  
             professional designation following the health care  
             practitioner's name.

          2. Defines advertisement for purposes of #1) above to  
             include communication by means of mail, television,  
             radio, motion picture, newspaper, book, directory,  
             Internet or other electronic communication.  Excludes  
             from the definition of advertisement the following:  
             medical directory released by a health care service plan  
             or a health insurer, a billing statement from a health  







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             care practitioner to a patient, or appointment reminder  
             from a health care practitioner to a patient.  Also  
             excludes from the requirement in #1) above any  
             advertisement or business card disseminated by a health  
             care service plan relating to contracted providers, as  
             specified. 

          3. Specifies that the requirement in #1) does not apply  
             until January 1, 2012 to any advertisement that is  
             published annually and prior to July 1, 2011. 

          4. Requires the MBC to adopt regulations on or before  
             January 1, 2012 regarding the appropriate level of  
             physician availability needed within clinics or other  
             settings using laser or intense pulse light devices for  
             elective cosmetic procedures.  Specifies that the  
             regulations to be adopted will not apply to laser or  
             intense pulse light devices approved by the federal Food  
             and Drug Administration for over-the-counter use by a  
             health care practitioner or by an unlicensed person on  
             himself/herself.

          5. Requires the MBC to post on its Internet Web site an  
             easy to understand fact sheet to educate the public  
             about cosmetic surgery and procedures, including their  
             risks.  Requires the fact sheet to include a  
             comprehensive list of questions for patients to ask  
             their physician and surgeon regarding cosmetic surgery.

          This bill, within the Health and Safety Code, Section 1248  
          et seq.:

          1. Includes in the existing definition of "outpatient  
             setting" facilities those that offer in vitro  
             fertilization, as specified.

          2. Requires the MBC to adopt standards that it deems  
             necessary for outpatient settings that offer in vitro  
             fertilization.

          3. Requires as part of the standards for operation and  
             approval of an outpatient setting that the outpatient  
             setting submit for approval by an accrediting agency at  
             the time of accreditation, a detailed plan, standardized  







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             procedures, and protocols to be followed in the event of  
             serious complications or side effects from surgery, as  
             specified.

          4. Requires the MBC to notify the public whether a setting  
             is accredited, certified, or licensed, or the setting's  
             accreditation, certification, or license has been  
             revoked, suspended or placed on probation, or the  
             setting has received a reprimand by the accreditation  
             agency.

          5. Requires an accrediting agency to immediately report to  
             the MBC if an outpatient setting's certificate for  
             accreditation has been denied.

          6. Requires that every outpatient setting which is  
             accredited to be inspected by an accreditation agency  
             and may also be inspected by the MBC.  Requires the MBC  
             to ensure that accreditation agencies inspect outpatient  
             settings.  

          7. Requires that the frequency of inspections depends upon  
             the type and complexity of the outpatient setting to be  
             inspected, and that inspections be conducted no less  
             than once every three years and as often as necessary by  
             the MBC to ensure the quality of care provided.

          8. Requires reports on the results of each inspection to be  
             kept on file with the MBC or the accrediting agency  
             along with the plan of correction and the outpatient  
             setting comments and that the inspection report may  
             include a recommendation for re-inspection, and that all  
             inspection reports, lists of deficiencies, and plans of  
             correction be public records open to public inspection.

          9. Deletes the requirement that the MBC or the accrediting  
             agency give reasonable prior notice and present proper  
             identification prior to an inspection.

          10.Requires rather than just authorizes the MBC to evaluate  
             the performance of an approved accreditation agency no  
             less than every three years.

          11.Provides that the outpatient setting shall agree with  







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             the accrediting agency upon a plan of correction when  
             they receive a notice of any deficiencies from the  
             accreditation agency and that during the time of  
             correction, the list of deficiencies and the plan of  
             correction shall be conspicuously posted in a clinic  
             location accessible to public view.

          12.Requires an accreditation agency to immediately report  
             to the MBC if an outpatient setting has been issued a  
             reprimand or if the outpatient setting's certification  
             of accreditation has been suspended or revoked or if the  
             outpatient setting has been placed on probation.

          13.Allows the MBC to issue a citation to the accrediting  
             agency if an accreditation agency is not meeting the  
             criteria set by the board.  Specifies a system for the  
             issuance of a citation to an accreditation agency.

          14.States the intent of the Legislature that the DPH,  
             pursuant to its existing regulation, inspect the peer  
             review process utilized by acute care hospitals as part  
             of its periodic inspections of those hospitals. 

           Background
           
           Popularity of Plastic Surgery  .  American Society of Plastic  
          Surgery (ASPS) Web site states that the about 12.1 million  
          cosmetic procedures were performed in 2008, representing a  
          $10.3 billion industry.  ASPS indicates that the top five  
          surgical procedures were breast augmentation, liposuction,  
          nose reshaping, eyelid surgery, and tummy tuck.  Moreover,  
          ASPS points out that there were 10.7 million  
          minimally-invasive cosmetic procedures 2008.  The top five  
          minimally-invasive procedures were Botox, hyaluronic acid  
          fillers, chemical peel, laser hair removal, and  
          microdermabrasion.  

           Accredited Outpatient Settings vs. Licensed Surgical  
          Clinics  .  The Health and Safety Code makes a distinction  
          between clinics licensed by the Department of Public Health  
          (DPH) and outpatient settings that are accredited by an  
          outside accrediting agency under the oversight of the MBC.   
          Clinics licensed by the DPH are non-physician owned, while  
          clinics accredited by an accreditation agency approved by  







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          the MBC are physician owned and operated.  DPH-licensed  
          clinics include a clinic that is not part of a hospital and  
          provides ambulatory surgical care for patients who remain  
          less than 24-hours.  As part of their licensure, clinics  
          under DPH's jurisdiction undergo inspection and must have  
          in place minimum standards of safety and staffing.  On the  
          other hand, clinics that are physician-owned and are  
          accredited by an accreditation agency approved by the MBC  
          are commonly referred to as outpatient settings.   
          Outpatient setting is defined as a facility where  
          anesthesia is used in doses that when administered does not  
          have the probability of placing the patient at risk for  
          loss of the patient's life.  These clinics are accredited  
          by one of four accreditation bodies that are approved by  
          the MBC.  These accrediting agencies must ensure that  
          certification programs include standards for the operation  
          of outpatient settings such as safety and emergency  
          training requirements, licensure or certification of allied  
          health staff, provision of onsite equipment, medication and  
          trained personnel in a medical emergency, permit surgery  
          only by a licensee who has admitting privileges at a local  
          accredited or licensed acute care hospital, as defined, and  
          a system for patient care and monitoring procedures.  The  
          four accrediting agencies approved by the MBC are the  
          American Association for Accreditation of Ambulatory  
          Surgery Facilities Inc., Accreditation Association for  
          Ambulatory Health Care, the Institute for Medical Quality  
          and the Joint Commission.

           Assisted Reproductive Technology (ART)  .  According to the  
          Centers for Disease Control (CDC), ART includes all  
          fertility treatments in which both eggs and sperm are  
          handled.  In general, ART procedures involve surgically  
          removing eggs from a woman's ovaries, combining them with  
          sperm in the laboratory, and returning them to the woman's  
          body or donating them to another woman.  CDC points out  
          that of the approximately 62 million women of reproductive  
          age in 2002, about 1.2 million, or two percent, had an  
          infertility-related medical appointment within the previous  
          year, and eight percent had an infertility-related medical  
          visit at some point in the past.  Infertility services  
          include medical tests to diagnose infertility, medical  
          advice and treatments to help a woman become pregnant, and  
          services other than routine prenatal care to prevent  







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          miscarriage.  CDC also states that the number of infants  
          born after ART doubled in the United States from 1996-2004,  
          and in 2005, more than 134,000 ART procedures were  
          performed and approximately 52,000 infants were born as a  
          result of these procedures.  According to a CDC 2008  
          report, infants conceived with ART are two to four times  
          more likely to have certain types of birth defects than  
          children conceived naturally.

          The Fertility Clinic Success Rate and Certification Act of  
          1992, or Wyden Act, is federal legislation that was  
          implemented to ensure the quality of ART services and to  
          furnish consumers with reliable information on pregnancy  
          success rates of individual ART clinics.  The Wyden Act  
          requires each ART program to report annually to the  
          Secretary of the Health and Human Services Agency through  
          the CDC, regarding pregnancy success rates and each embryo  
          laboratory used by the program and whether certified under  
          the Wyden Act.  According to the 2006 ART report, there are  
          over 60 fertility clinics that reports success rates to the  
          CDC.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)

           Major Provisions                2010-11     2011-12     
          2012-13   Fund
           Outpatient facility           $289 $213$213Special* 
          Inspections (MBC)

          * Medical Board of California Contingent Fund

           SUPPORT  :   (Verified  5/27/10)

          Medical Board of California
          Procter and Gamble Company

           OPPOSITION  :    (Verified  5/27/10)

          California Hospital Association







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           ARGUMENTS IN SUPPORT  :    The author's office states that  
          this bill attempts to guarantee the public's safety by  
          strengthening the regulation and oversight of fertility  
          clinics and surgical centers performing cosmetic  
          procedures, and ensures that quality of care standards are  
          in place at these clinics and checked by the appropriate  
          credentialing agency.  The author's office points out that  
          recent event involving a woman who gave birth to octuplets  
          revealed that fertility clinics operate with little or no  
          state oversight.  A clinic that assists women in any  
          reproductive technology should operate under specified  
          standards, guidelines and procedures and since most of  
          these clinics are physician-owned, this bill would require  
          these clinics to be accredited by an accrediting agency  
          approved by the MBC.

          In addition, the author's office indicates that the number  
          of cosmetic procedures performed in the United States is  
          increasing at an alarming rate.  According to the ASPS,  
          over 12 million cosmetic procedures were performed in 2008,  
          and $10.3 billion were spent on cosmetic procedures in the  
          United States.  Consumers are also inundated everyday with  
          advertisements on how to look and feel better fast.   
          Medical spas, or facilities offering botox injections,  
          laser hair removal, and microdermabrasion are increasing in  
          popularity and are emerging in malls, city office buildings  
          and store fronts across the country.  Although the Federal  
          Food and Drug Administration oversees the safety of  
          machines and skin-care products used, there is little  
          regulation of these medical spas to guarantee that  
          practitioners in these facilities are administering  
          treatments safely and patients are aware of the potential  
          risks associated with any treatments.  

           ARGUMENTS IN OPPOSITION  :    The California Hospital  
          Association (CHA) has taken an "oppose unless amended"  
          position on the provisions of this bill stating the intent  
          of the Legislature that the DPH, pursuant to its existing  
          regulations, inspect the peer review process utilized by  
          acute care hospitals as part of its periodic inspection of  
          these hospitals.  CHA believes that such provisions are  
          unnecessary because the DPH already has authority to  
          inspect hospitals for compliance with California hospital  







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          licensing requirements, including requirements related to  
          hospital medical staffs

          JJA:do  5/28/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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